Suncor Sets Net Zero Objective
Suncor has revealed an updated strategy which is focused on increasing shareholder returns and accelerating progress in reducing greenhouse gas (GHG) emissions, with an objective to be net-zero by 2050.
The company said the strategy is underpinned by its principles of operational excellence and capital discipline. Suncor noted that it will focus its planned $4.14 billion (CAD $5 billion) annual capital spend through 2025 on optimizing its integrated value chain and sustaining the base business, while improving its cost and carbon competitiveness, and growing low-carbon businesses, which is expected to deliver an annual $1.6 billion (CAD $2 billion) of incremental free funds flow to the business by 2025.
This planned free funds flow growth will be focused on returning significant value to shareholders through increased dividends, ongoing share buybacks and fortifying the balance sheet through continued debt reduction, Suncor revealed. The company outlined that it expects to reduce GHG emissions by 10 megatons (MT) per year across its energy value chain by 2030 by reducing emissions in its base business and growing its renewable fuels, electricity, and hydrogen businesses. Suncor’s emissions were approximately 29 MT per year in 2019.
“For decades, Suncor has been evolving and growing its business – transforming a budding oil sands resource into one of the world’s most reliable and ESG-leading oil basins in the world,” Mark Little, Suncor’s president and chief executive officer, said in a company statement.
“We will continue to produce oilsands for many decades to come, driving significant shareholder returns and value, and delivering further emissions reductions on our journey to net-zero by 2050,” he added.
Suncor is Canada’s leading integrated energy company, with a global team of over 30,000 people, the company’s website highlights. Suncor's operations include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the U.S., and the Petro-Canada retail distribution network.
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